Even in my home country, iPhone sales have not prospered in recent quarters.
In recent income reports, Apple confirmed iPhone sales plummeted over the same period last year. Apple argues that the main reason is weak sales in China, but the document submitted to the US Securities and Exchange Commission (SEC) recently showed a completely different story.
Poor iPhone sales in all regions, including the US
In the newly submitted Form 10-Q document to the SEC, Apple analyzed in detail the business performance in the past 6 months of all the products they are distributing (iPhone, iPad, Service …) . Of course, it is accompanied by business situation in each geographic area such as Europe, America, China …
IPhone sales have declined in the past six months. The Chinese market certainly affected Apple’s performance the most, but in fact since October last year, iPhone sales have declined in all regions of the world. Sales of Apple’s iPhone compared to last year declined across all regions except the Americas, with China most affected, followed by Europe and Japan.
In most of the region, poor iPhone sales are compensated in part by improving the performance of other product categories. For example, in Europe, the Smart Services and Wearing segment has grown significantly, while in Japan the Services and iPad segments grew strongly. However, in the Americas, the Service and smart wearables segment completely offset weak iPhone sales and boost annual growth to 4%.
The situation in China seems to have improved
Looking at Apple’s business situation in the last 3 months instead of 6 months, we see Apple’s efforts in some areas have begun to pay off. Other markets are still declining.
As Apple mentioned in the recent earnings report, at the end of the last quarter, iPhone demand in China has improved. “Apples Apples” did not elaborate on this issue, but it seems to have helped their financial results a little better in the quarter ended March 31, the decline in revenue compared to last year only. 22%. This is still a significant decline but still better than the average -25% that Apple has suffered in this region since October last year.
Another area of improved iPhone business situation is Japan. In the past 6 months, iPhone sales have decreased by an average of 2% but in the last 3 months sales have increased by 1%. Similarly, sales in the Americas continued to increase throughout the quarter.
Moving to Europe and the rest of Asia Pacific, the situation is even worse. Since October, Apple’s sales in these two regions have dropped by an average of 4% and 2% respectively. But in the first quarter of this year, these numbers continued to fall to 6% and 9% because iPhone demand was even lower than the last 3 months last year.
IPhone sales are not expected to increase during 2020
Regarding the business situation throughout the rest of 2019, it seems that Apple is confident that it can improve the situation in China and eventually slow down the annual decline process. However, Apple still forecasts the current quarterly sales decline by European iPhone business and the rest of Asia Pacific is facing many difficulties. It is not clear how Apple will improve the situation in these two areas.
By the end of 2019, when the new iPhone was launched iPhone demand would be slightly improved. However, recently analyst Ming-chi Kuo predicted that during 2020 iPhone sales were almost unchanged. Instead, Kuo believes that Apple’s smartphones will return to growth by the end of 2020 when the iPhone 5G launches with modems from Qualcomm and Samsung.